Latest news with #Upstream
Business Insider
7 days ago
- Business
- Business Insider
TotalEnergies sells stake in Nigeria's Bonga field to Shell for $510 million
French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. TotalEnergies has agreed to sell its 12.5% stake in Nigeria's Bonga oil field to a Shell subsidiary for $510 million. This transaction will increase Shell's ownership in the Bonga field to 67.5%. The deal remains subject to regulatory approvals and is expected to conclude by year-end. French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. The divestment, made through TotalEnergies EP Nigeria, was confirmed in an official statement from the company. The deal will increase Shell's ownership in the Bonga oil field to 67.5%, stressing its sustained focus on offshore oil production in Nigeria, even as it retreats from onshore operations plagued by oil spills. " TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven" said Nicolas Terraz, President Exploration & Production at TotalEnergies. 'In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG." Shell recently sold those assets to Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, in a deal worth up to $2.4 billion. Bonga field set for major expansion In a move to boost output, Bonga's stakeholders approved a field extension project aimed at adding 110,000 barrels of oil equivalent per day, with the first oil expected by the end of the decade, according to Reuters. The field's floating production, storage and offloading (FPSO) vessel has a total processing capacity of 225,000 barrels per day. 'This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,' said Shell's upstream chief Peter Costello. Esso Exploration and Production Nigeria, a subsidiary of Exxon, holds a 20% stake in the Bonga field, while Agip, owned by Oando, controls 12.5%. The transaction is pending regulatory approvals and is anticipated to be finalized by year-end.
Business Insider
7 days ago
- Business
- Business Insider
TotalEnergies sells stake in Bonga field to Shell for $510 million
French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. TotalEnergies has agreed to sell its 12.5% stake in Nigeria's Bonga oil field to a Shell subsidiary for $510 million. This transaction will increase Shell's ownership in the Bonga field to 67.5%. The deal remains subject to regulatory approvals and is expected to conclude by year-end. French energy giant TotalEnergies announced on Thursday that it will sell its 12.5% non-operating stake in Nigeria's Bonga oil field to a subsidiary of Shell for $510 million. The divestment, made through TotalEnergies EP Nigeria, was confirmed in an official statement from the company. The deal will increase Shell's ownership in the Bonga oil field to 67.5%, stressing its sustained focus on offshore oil production in Nigeria, even as it retreats from onshore operations plagued by oil spills. " TotalEnergies continues to actively high-grade its Upstream portfolio, to focus on assets with low technical costs and low emissions, and to lower its cash breakeven" said Nicolas Terraz, President Exploration & Production at TotalEnergies. 'In Nigeria, the Company is focusing on its operated gas and offshore oil assets and is currently progressing the development of Ubeta project, designed to sustain gas supply to Nigeria LNG." Shell recently sold those assets to Renaissance, a consortium made up of ND Western, Aradel Energy, First E&P, Waltersmith, and Petrolin, in a deal worth up to $2.4 billion. Bonga field set for major expansion In a move to boost output, Bonga's stakeholders approved a field extension project aimed at adding 110,000 barrels of oil equivalent per day, with the first oil expected by the end of the decade, according to Reuters. The field's floating production, storage and offloading (FPSO) vessel has a total processing capacity of 225,000 barrels per day. 'This acquisition brings another significant investment in Nigeria deep-water that contributes to sustained liquids production and growth in our Upstream portfolio,' said Shell's upstream chief Peter Costello. Esso Exploration and Production Nigeria, a subsidiary of Exxon, holds a 20% stake in the Bonga field, while Agip, owned by Oando, controls 12.5%. The transaction is pending regulatory approvals and is anticipated to be finalized by year-end.
Observer
20-05-2025
- Business
- Observer
Energy shift must balance business, climate
MUSCAT, MAY 20 The energy transition must strike a pragmatic balance between climate ambitions and business sustainability, said Emry Hisham Yusoff, Senior General Manager of the Carbon Management Division, Upstream at Malaysia's Petronas. Speaking at a panel session during the Oman Petroleum & Energy Show (OPES), Yusoff addressed growing concerns among industry stakeholders about the economic viability of decarbonisation pathways, especially in the context of carbon capture and storage (CCS) and other capital-intensive interventions. 'Yes, there is pressure in investor and stakeholder meetings,' he acknowledged. 'But we must ensure that alignment remains between long-term climate targets and the realities of running viable energy businesses.' Yusoff noted that natural gas continues to play a critical role in Malaysia's energy mix, not just as a transition fuel but also as a core product in global markets. 'Gas demand is still growing—especially in Asia. We continue to see interest in LNG and related projects. It's not about stopping activity, but about transforming it responsibly.' On CCS, Yusoff was cautious but optimistic. 'In places like the US, where the government supports CCS through incentives such as the Inflation Reduction Act (IRA), projects are moving. But for us in Southeast Asia, the economics are different. The CO₂ concentration in our emissions streams is often below 4%, which makes capture much more energy- and cost-intensive,' he explained. He added that Petronas is now reassessing how best to approach energy efficiency and emissions reduction. 'We are working to reduce our own energy use and emissions intensity across upstream operations. But we also need to consider whether investments are achieving meaningful impact or just adding operational complexity.' Yusoff emphasised that energy transition strategies must be tailored to regional and operational contexts. 'This is not a copy-paste exercise. We must understand what works locally and where we need to refocus efforts.'
Yahoo
12-05-2025
- Business
- Yahoo
BKV Corp (BKV) Q1 2025 Earnings Call Highlights: Strategic Growth Amidst Challenges
Revenue: Not explicitly mentioned in the transcript. Net Loss: $79 million or a loss of $0.93 per diluted share. Adjusted Net Income: $35 million or $0.41 per diluted share. Combined Adjusted EBITDAX: Just over $100 million, including $90 million from upstream and $10 million from power. Power JV Adjusted EBITDA: $20 million, with BKV's 50% share being $10 million. Development CapEx: $48 million, 26% below the midpoint of the guided range. Total CapEx: $58 million, significantly below the low end of the first quarter guidance range of $75 million. Net Production: 761 million cubic feet equivalent per day. Cash and Cash Equivalents: Approximately $15 million at the end of the first quarter. Net Leverage Ratio: Less than 0.7 times net debt to adjusted EBITDAX. Adjusted Free Cash Flow: $6 million, or $22 million excluding premiums paid. Hedging Position: 58% of natural gas hedged at $3.44 per MMBTU for 2025. Warning! GuruFocus has detected 4 Warning Signs with BKV. Release Date: May 09, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. BKV Corp (NYSE:BKV) is positioned to grow rapidly in multiple economic scenarios, leveraging megatrends in energy. The company is one of the largest natural gas producers in Texas, with robust domestic and global demand projections. BKV's carbon capture business is accelerating, supported by strong bipartisan backing for the 45Q tax credit. The company's power joint ventures in Texas are well-positioned to capitalize on growing power demand, particularly from data centers. BKV's four business linesupstream, midstream, carbon capture, and power generationcreate premium margins and differentiated products. The macroeconomic landscape presents challenges such as persistent inflation and potential tariff impacts. Despite strong performance, BKV reported a net loss of $79 million in the first quarter. There are concerns about the resilience of the 45Q tax credit, although BKV remains confident in its robustness. The company faces potential supply chain disruptions, although it projects minimal impact. BKV's CCS projects require significant capital investment, and the pace and scale of these investments may shift. Q: With the recent JV with CIP and Comstock projects, do you think the momentum behind CCS projects is picking up, especially for gas processing projects? A: Christopher Kalnin, CEO: The momentum for carbon capture, particularly in natural gas processing, is strong. The 45Q tax credit is robust, with bipartisan support, enhancing U.S. energy competitiveness. BKV is leading in carbon capture, crucial for decarbonizing power for data centers. Eric Jacobsen, President of Upstream, added that the momentum around natural gas processing plants remains strong, with robust project economics and BKV establishing itself as a leader in this space. Q: Why weren't the Cotton Cove and Comstock projects included in the JV? A: Eric Jacobsen, President of Upstream: The exclusion was due to timing criteria. The first two projects are in the JV, with more to come in the FID and pre-FID phases. Q: Can you explain the unchanged CapEx for CCUS despite the new JV? A: Eric Jacobsen, President of Upstream: The JV with CIP allows us to optimize capital spend in CCS and diversify across other sectors. While the aggregate amount remains robust, near-term timing may shift. We remain committed to delivering on FID projects and achieving a 1 million ton per year CO2 injection rate by 2027. Q: What is your inclination to grow production given the current strip pricing? A: Eric Jacobsen, President of Upstream: We maintain a disciplined capital investment framework based on commodity price ranges. With current strip prices, we are committed to 2-3% growth for 2025. We are monitoring macroeconomic conditions closely and have the opportunity set to invest further if conditions remain favorable. Q: Can you elaborate on the funding mechanism for the JV with CIP? A: David Tameron, CFO: While specific upfront capital details are confidential, the JV provides significant flexibility and a funding mechanism. Capital will be drawn down over 12 to 24 months as projects are deployed. Projects will be contributed to the JV based on board approval. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Business Times
06-05-2025
- Business
- Business Times
China's secret weapon in the trade war
AS CHINA'S export machine sputters under the weight of 145 per cent tariffs, jobs are at risk. Some 16 million workers are involved in the production of goods bound for America, says Goldman Sachs, a bank. Nomura, another bank, projects a possible 5.7 million job losses in the near term and 15.8 million in the long run as the shock ripples through the economy. China's leaders are already yanking levers to soften the blow. At a Politburo meeting on Apr 25, they vowed to increase rebates of unemployment-insurance payments for firms hit by tariffs. But there is another labour market saviour: the vast gig economy. Indeed, Donald Trump's trade war could complete that sector's metamorphosis from a freewheeling industry viewed with suspicion by the Communist Party, into the world's largest state-approved e-market for labour, with a stronger safety net attached. The party is turning to the gig economy because it is vast: the state-controlled trade-union federation estimates there are 84 million people relying on 'new forms of employment', including delivery services and ride-hailing. The government cites a broader category of 200 million 'flexible workers', including the self-employed and part-time workers. Both figures far exceed the 54 million jobs at state-owned enterprises in cities, and make up a big chunk of the 734-million-strong workforce. One delivery firm, Meituan, uses 7.5 million couriers who get paid US$11 billion a year. Drivers often describe their taxing work as guodu, a transitional job 'to ferry over a stream'. Mr Wan is typical. The 36-year-old looked for the highest paying job within reach and saw that food-delivery drivers could make 10,000 yuan (S$1,773) a month. He criss-crosses Beijing on his scooter from 6 am to 9 pm each day. 'Every penny matters right now,' he says. Couriers loom large in the public mind. Upstream, a recent film about a middle-aged programmer-turned-delivery-driver, put their ranks on the big screen. Happily for the party this huge gig economy is growing, despite trade clashes and years of sluggish consumer confidence. Meituan's workforce, typically employed via third-party contracting firms, is 41 per cent larger than in 2021. In March, its bosses said they expected healthy growth of both food and shopping delivery. The firm is forecast to increase its sales by about 15 per cent annually until 2027. Similarly, the number of ride-hailing licences exploded from 2.9 million in 2020 to 7.5 million in 2024. Even more helpfully for the party, an epic struggle for market share between rival firms means a hiring war is being unleashed amid the trade war. On Apr 21, an e-commerce firm that recently entered the food-delivery business, said it would take on 100,000 new riders by the end of July. The combination of price cuts for consumers and more labour costs has spooked investors, who have sent share prices tumbling. But more jobs and some kind of safety net are exactly what the party wants. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The miracle-cure properties of the gig economy are leading to the political rehabilitation of the companies that power it. As part of a broader crackdown that began in 2020, the platforms were denounced as part of a 'disorderly expansion of capital'. Leaders viewed the firms as 'castles built on sand', says Tilly Zhang of Gavekal Dragonomics, a consultancy. But the party has realised jobs and consumption matter, too. The pivot began in 2023, when Li Qiang, the prime minister, praised the platform companies for their 'increasingly prominent' role in demand and employment. Now the government is openly embracing the gig economy as a cushion for the economy. Shadow welfare system That embrace is so fulsome that the government is even encouraging gig-economy companies to create what amounts to a shadow welfare system. In February, offered social security benefits to its drivers. Meituan says that it will 'gradually provide' social security for its couriers, starting with a pilot scheme in the second quarter of 2025. Desperate to impress, firms are investing in rest stations, meals and subsidies for drivers, 'for the government to see', says one economist. What's not to like? A huge question is who ultimately pays. Pensions and medical insurance sound great to workers, but are not if they come directly or indirectly out of their pay cheques. insists it will pay both the employer and employee's premiums into a state-run scheme. Scepticism abounds on social media. Several drivers, when asked about the scheme, use the phrase, 'the wool still comes from the sheep's back' – nothing comes for free. In the southern city of Quanzhou, where Meituan last month launched a pilot scheme to reimburse half of pension premiums for qualifying drivers, 30-year-old Lai says he is not interested. Sitting on his scooter outside a mall, he says: 'When we're old, the workforce will be even smaller, and the pension contributions they pay will not be able to support my generation.' If the social burden on the gig-economy firms grows too great, it may be difficult for them to cope financially, hence the share price collapse. The state should protect the flexibility of gig workers and consider new ways to transfer income to them, warns the economist. Otherwise, consumer tech companies could disappear along with the drivers' jobs, just as the trade war hurts manufacturing employment. In the long run, technology also poses a threat to the job-creating qualities of the gig economy. Meituan is pioneering the use of delivery by autonomous vehicles and drones, which it says have completed 4.9 million and 1.45 million customer orders respectively. Nonetheless, the story of the gig economy is an example of how the trade war will force China's rulers to adapt. They might love their vision of high-tech workers making semiconductors for the world. What they have instead is a low-tech army of people buzzing about on scooters delivering meals for instant munching by ravenous consumers. It keeps the show on the road. That is true for the drivers, too. After a year of delivery, Lai says he is moving on. He is joining a relative who runs a factory in the eastern hub of Yiwu to sell goods on Amazon. He predicts the trade war will soon end. But if he is wrong, he will be back on his bike. ©2025 The Economist Newspaper Limited. All rights reserved
